Metal Rolling Machines Procurement Category Market Research Report Now Available from IBISWorld

Share Article

Metal rolling machine prices have increased moderately due to rising steel and wage costs and growing demand; prices have been volatile due to fluctuations in the price of steel. To help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has added a report on the procurement of Metal Rolling Machines to its growing collection of procurement category market research reports.

Prices will continue rising with demand growth; however, price growth will slow and prices will be less volatile because steel costs will not increase strongly in any single year

Los Angeles, CA (PRWEB)February 26, 2014

Metal rolling machines have a buyer power score of 2.8 out of 5. This relatively low score stems in part from the moderate growth and high volatility of prices during the past three years. “Prices shot up significantly in 2011 alongside metal rolling machine manufacturers' increased steel costs and growing demand from nonresidential construction,” says IBISWorld procurement analyst Hayden Shipp. “Despite a drop in 2013, the average price has grown since 2010.”

Buyer power has been further compromised by rising demand, which has placed buyers in an ever-larger pool of downstream users since 2010; this pool will continue to grow during the three years to 2016. Suppliers' medium and rising level of market share concentration does not favor buyers under such conditions because supplier competition is decreasing. The top two suppliers, Formtek Group and Bradbury Group, are responsible for most metal rolling machine sales. Corporate group manufacturers, which offer some of the highest quality machines (measured in terms of resale value) and broadest range of products and service add-ons, continue to increase their dominance through acquisitions and organic growth. “Many buyers can still decrease overall costs by choosing such suppliers, particularly if they have multiple facilities that are located near these suppliers' many branches,” adds Shipp.

Reductions in buyer power will be partly offset by the projected slowdown in machines' price growth and price volatility in the three years to 2016. During this period, prices are expected to increase with no major year-on-year rises despite accelerated demand growth. This slower price growth and lower volatility will stem from the lack of major price jumps for steel inputs. Buyers can be confident that 2014 will present the most favorable pricing during the three-year forecast period, which helps with cost management. In fact, prices in 2014 are expected to drop slightly compared with 2013 on the back of falling steel costs. Buyer power is further aided by rolling machines' slow depreciation, reducing their risk as an investment. High quality machines can operate for more than 40 years thanks to their modular construction, and buyers can charge top dollar for their used machines on the resale market. For more information, visit IBISWorld’s Metal Rolling Machines procurement category market research report page.

This report is intended to help buyers of metal rolling machines, which shape metal stock as it passes through one or more sets of rolls. Rolling machines include roll benders, which produce cylindrical products from metal sheets or bars. Rolling machines also include rolling mills, such as roll formers. Roll formers perform continuous bending operations as sheet metal passes through sets of rolls mounted on consecutive stands. Each set bends the stock incrementally until the desired cross-section profile is reached. Common applications for roll forming include automobile parts, construction, office furniture, store fixtures and conveying systems.

About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.